Wholesale cannabis prices tumbled in 2017 — and they have yet to hit rock bottom

The price of a pound of legal marijuana has been plummeting for 18 months, according to a new report tracking the cannabis U.S. spot price index.

Analysts at Cannabis Benchmarks, an independent price reporting agency, found the price per pound of legal marijuana was down 13 percent in 2017 compared to 2016, and they’re projecting prices will continue to fall in 2018.

The findings were published in the Denver-based firm’s new 2017 Annual Review and Outlook, which examines the U.S. spot index for legal cannabis. Similar to commodities like gold and oil, the independent price reporting agency tracks spot prices — the current value in the marketplace at which an asset can be bought or sold for immediate delivery.

The declines in wholesale cannabis prices realized in 2017 are part of a trend Cannabis Benchmarks has been tracking since the firm first began collecting pricing data in early 2015, said report author Adam Koh. It appears that prices may be reaching their nadir, he said.